Let's Play! 2024

Bridging the awareness-engagement gap 

Esports have emerged as one of the mainstream entertainment categories in Southeast Asia, driven by the region’s tech-savvy and mobile-first population. The awareness of esports across the region is remarkably high, with an overall reach of 94%, surpassing other regions such as Europe, which stands at 85% (see Figure 1). Among the markets within Southeast Asia, Vietnam emerges as the most esports-active market, boasting a 94% awareness rate and a 59% regular viewership. In contrast, other markets face challenges in converting awareness into consistent viewership, with Singapore reporting the lowest regular reach at just 18%.

This substantial drop-off in the engagement funnel is evident across the region. While 75% of respondents have watched esports, only 32% remain regularly engaged (defined as watching at least one hour per week). However, there is a silver lining – among these regular viewers, nearly half are highly engaged, consuming over seven hours of content per week. This engagement pattern presents two key opportunities for industry players: converting sporadic viewers into regular viewers, and cultivating engaged viewers into brand advocates and loyal fans, who have demonstrated intensive consumption habits.

Demographically, while the esports viewership remains male-dominated, women constitute a substantial 44% of the audience, indicating significant potential for nurturing female viewership and fandom. Younger generations are the driving force behind the esports ecosystem, with millennials and Gen Z accounting for 81% of the audience – notably skewing younger than both the general population and video gamers.

To capitalise on these engagement trends, industry players will need to deploy strategies to enhance fan experiences through targeted segmentation and personalised interactions, leveraging tech-enabled and data-driven approaches including big data, internet of things (IoT), and augmented reality /virtual reality (AR/VR) technologies. Features such as advanced statistics, real-time analytics, and interactive replays particularly appeal to the Gen Z and millennial audiences by creating more immersive experiences.

Optimising platform, brand, and content strategies for growth

Esports viewers in Southeast Asia demonstrate greater willingness to pay for free-time activities such as paid subscriptions and attending live events regularly (see Figure 2). Compared to the overall sample, they are also more receptive to advertising and engage frequently in non-grocery shopping – making them a highly accessible audience for commercial partners. However, the challenge lies in capturing and sustaining their attention, as esports viewers also show more propensity to have many hobbies.

To attract their attention, game publishers and tournament organisers will therefore need to focus on building strong brand equity around esports leagues while optimising content delivery across platforms. The type of video game or esports title, along with the specific leagues or tournaments, are the most critical factors in content selection. Platform choice follows closely, with YouTube Gaming, Facebook Gaming, league-provided websites/apps/streams, and SteamTV being particularly popular in Southeast Asia. This contrasts with global trends, where Twitch holds greater prominence as the second most important access point for esports consumption. The region’s mobile-first nature – accounting for nearly 55% of all gaming hours spent – explains the strong performance of YouTube and Facebook Gaming.

Social media engagement among esports viewers in Southeast Asia surpasses that of the general population, with Facebook, TikTok, and Instagram emerging as the top platforms for consuming esports content. Effective content strategies – such as sharing game clips and highlights, hosting live events, providing news or commentary, and amplifying esports athletes’ influence – might be avenues to further engage the audience.

While live events rank as the least important access point for esports consumption both globally and in Southeast Asia, they offer potential for reimagining hybrid experiences with digital integration, blending physical attendance with online engagement to enrich the overall fan experience.

Implementing market-specific approaches

The interest in esports is increasingly on par with traditional sports in Southeast Asia (see Figure 3). This shift could serve as a signpost for how players in the ecosystem – esports teams, leagues, governing bodies, as well as media and entertainment companies – should adapt their strategies to the respective markets.

The market-specific insights reveal several nuances that can help industry players tailor their local strategies. In Vietnam, esports viewership has surpassed soccer, highlighting a thriving esports scene and a significant growth area. Notably, the audience is geographically dispersed, with only 17% of viewers residing in larger cities (see Figure 4). This distribution suggests digital engagement strategies may take precedence over physical events, with nationwide digital campaigns likely to yield stronger results than location-specific initiatives.

In Thailand and the Philippines, while esports currently rank behind football and basketball respectively, traditional sports entities are increasingly recognising its value as an extension of their engagement strategies. For instance, Thailand’s Buriram United football club has established an esports team, while the Philippine Basketball Association has launched Mobile Legends: Bang Bang competitions – both of which have expanded the clubs’ brand presence and broadened their audience by leveraging existing fan bases.

Similarly, Persib Bandung – an Indonesian football club – launched an esports division in 2020 to expand its fan base and explore new revenue streams. This trend, already evident in regions like Europe with the French football club Paris Saint-Germain (PSG)’s esports division, underscores the strategic potential for deeper synergy and collaborations, with initiatives ranging from co-branded activations to structured esports programs integrated within existing sports ecosystems.

In Malaysia, increased esports reach and engagement compared to 2022 signal a growing market. With 42% of esports viewers concentrated in larger cities, industry players may benefit from urban-focused activations such as tournaments or community events that capitalise on population density.

Indonesia faces declining engagement but still holds immense potential if grassroots initiatives are revitalised. Possible approaches might be to create local language content and develop regional esports leagues or community-building activities, especially considering that 50% of esports viewers are concentrated in larger cities.

Meanwhile, in Singapore, while reach is on the rise, there has been a slight decline in regular viewership. This suggests the need for innovative strategies to convert awareness into engagement, possibly through models that align with local lifestyle preferences, competitive interests, and evolving digital consumption habits.

Unlocking the next phase of growth

As esports leagues compete for fans’ time and attention in an increasingly crowded entertainment landscape, we anticipate a sharper focus on delivering novel experiences that enhance engagement. More sophisticated audience segmentation based on factors like gender, age groups, and viewing preferences will likely emerge, enabling more targeted content and marketing strategies.

Ultimately, unlocking the full potential of esports in Southeast Asia requires collaborative efforts across the entire value chain – from game developers and streaming platforms to league organisers, content creators, and publishers. This industry-wide collaboration would enable the creation of strategies effectively adapted to the unique local nuances of Southeast Asian markets, capitalising on the region’s exceptional potential for competitive gaming.

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